Govt accounts continue to track above forecasts

Published: Tue 13 Feb 2018 10:41 AM
Hon Grant Robertson
Minister of Finance
13 February 2018
Govt accounts continue to track above forecasts
The Financial Statements of the Government for the six months ended 31 December continue the positive trends seen in October and November, Finance Minister Grant Robertson says.
Better-than-expected employment growth, higher residential investment, together with private consumption at the end of 2017, contributed to the Government’s accounts continuing to track slightly better than Treasury’s forecasts.
“Core Crown tax revenue was $597 million higher than forecast, and is currently $1.7 billion better than the same point last year. Core Crown expenses remained above the Half Yearly Economic and Fiscal Update (HYEFU) forecast, by $166 million. The Operating Balance Before Gains And Losses (OBEGAL) was a surplus of $1.1 billion over the six months, $779 million above forecast. Net debt was 23.2% of GDP at the end of December, similar to the HYEFU forecast of 23.4% of GDP and on track to be below 20% of GDP by 2022 – meeting the Budget Responsibility Rule,” Grant Robertson says.
“Treasury analysis shows that the better revenue result was driven largely by source deductions coming in at $254 million above forecast. This was due to higher-than-expected employment growth in recent months. Treasury also noted that they expect some of this variance will be permanent, indicating this will now be incorporated into the Budget 2018 fiscal forecasts.
“Meanwhile, GST was $196 million above forecast in the six months. Treasury said this was due to residential investment and private consumption being higher than expected. Customs and excise duties also came in at $129 million above forecast.
“These positive results chime with the evidence we’ve been hearing through recent consumer, employee and business confidence surveys. Unemployment fell to a nine-year low of 4.5% in December. Meanwhile, the ANZ’s job ads series in January showed the biggest monthly increase in three years. Employment confidence is also near 10-year highs, according to the latest Westpac McDermott Miller index.
“We’ve seen consumer confidence improve over the past month, while businesses’ confidence in their own activity – which is more closely correlated to economic growth than headline business confidence – has also been positive.
“At this point in the year these results indicate the economy is tracking well. The Government is committed to seeing this continue and ensuring that we have sustainable growth and a fair share in prosperity for all New Zealanders,” Grant Robertson says.

Next in New Zealand politics

Former refugees say current policy 'racist', must change
Operation Burnham: Hit & Run author backtracks on key claim
PM defends handling of staffer's conflicts of interest
Strengthening New Zealanders’ voting rights
By: New Zealand Government
Stats NZ, phone companies to track people's movements
NZ universities rank well despite resourcing constraints
By: Universities New Zealand - Te Pokai Tara
21 month prison sentence for sharing mosque shooting video
Celebrating our new New Zealanders
By: New Zealand Government
Greens welcome family reunification review
By: Green Party
Caritas promotes message to journey with migrant community
By: Caritas Aotearoa
Kiwi aid worker shares 3 ways to help on World Refugee Day
By: Tearfund
Palmerston North the first NZ city to support #WithRefugees
By: Palmerston North City Council
Recruitment of job seekers from refugee backgrounds
By: HOST International
Laughing with refugees: How one kiwi charity is using humour
By: Refugees As Survivors
Leave Behind Prejudice and Fear to Change Narrative
By: United Nations
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media